grace period

noun

Definition of grace period 

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

Then the Trump administration would give those who are doing business with Iran a six-month grace period to wind down business and avoid running afoul of those sanctions. Josh Lederman, Fox News, "World to learn fate of Iran nuclear pact Tuesday afternoon," 8 May 2018 However, the White House did give a one year grace period that will expire on March 31, 2018. Christopher Harress, AL.com, "Liberians in Alabama to face deportation after White House deferral program ends," 27 Mar. 2018 When it was first proposed, the idea was that the future trading relationship would already be clear and the grace period would allow for the implementation of the new regime. Emma Ross-thomas, Bloomberg.com, "U.K. and EU Agree to Brexit Transition as Irish Puzzle Persists," 19 Mar. 2018 Most federal student loans come with a grace period after graduation — typically, six months — during which borrowers do not have to make loan payments. Ann Carrns, BostonGlobe.com, "Just out of college? Now is the time to take stock of your finances," 7 July 2018 For those who are accepted, a grace period of six months is promised, within which time young men of fighting age should either join the army or pay an $8,000 penalty. Louisa Loveluck And Suzan Haidamous, Washington Post, "In one Lebanese town, a dilemma divides refugees: to stay or return to Syria," 30 June 2018 The Trump administration has vowed to punish companies that continue to do business with Iran after grace periods of three or six months, depending on the economic sector involved. Laurence Norman, WSJ, "European Officials Look to Blunt Impact of Renewed U.S. Sanctions on Iran," 11 May 2018 For two weeks, starting April 5, there will be a grace period. Robert Avery, Houston Chronicle, "Eaves to start minor league season in Triple A," 4 Apr. 2018 Facebook tightened access in 2014 and gave pre-existing apps a one-year grace period to comply with the new rules. Deepa Seetharaman, WSJ, "Facebook’s Latest Problem: It Can’t Track Where Much of the Data Went," 27 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'grace period.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of grace period

1907, in the meaning defined above

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Last Updated

27 Oct 2018

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The first known use of grace period was in 1907

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More Definitions for grace period

grace period

noun

Financial Definition of grace period

What It Is

A grace period is a period of time, usually about 10 days, during which a past due amount can be paid with little or no penalty.

How It Works

Let's assume your credit card payment is due on December 15. You forget to make the payment. On December 20, you remember. By then, though, it's too late. Your bill is past due.

However, if your account has a grace period, you can make the payment and the creditor might not assess a late fee or other penalty.

Why It Matters

Past-due bills often incur late fees, higher interest rates, penalties and other charges. Worst of all, the creditor might report the late payment to the credit reporting agencies, leaving a black mark on your credit rating (and even lowering your credit rating). In some cases, a bill get so past due (say, 90 or 180 days), that the creditor considers the account in default and may charge off the balance. A grace period gives customers a chance to catch up quickly before it's too late. After that point, the lender might assign or sell the account to a collection agency, which will try to collect the balance.

Source: Investing Answers

grace period

noun

English Language Learners Definition of grace period

: an amount of extra time that someone is given to pay a bill, finish a project, etc.

grace period

noun
grace pe·​ri·​od

Legal Definition of grace period 

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a : a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b : a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace

More from Merriam-Webster on grace period

Nglish: Translation of grace period for Spanish Speakers

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